The balance sheet of Cattleman's Steakhouse shows assets of $86,900 and liabilities of $13,800. The fair value of the assets is $90,700 and the fair value of its liabilities is $13,800. Longhorn paid Cattleman's $84,020 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:

Multiple Choice

• $2,880.

• $7,120.

• $10,920.

• $7,400.